High-quality retail stocks show signs of more upside

High-quality retail stocks have made strong gains over the past few months, and recent trading activity may be on the horizon, CNBC’s Jim Cramer said Tuesday.

“The non-essential high-end retailers have already started, but the charts, as interpreted by Bob Lang, suggest that Capri Holdings, Tapestry, LVMH and Nordstrom may all be more upside down here, thanks to the stimulus tests,” said the ‘Mad Money’ host.

Lang, the founder of ExplosiveOptions.net and a contributor to TheStreet.com, is a trusted technician that Cramer relies on to read the state of the market.

Cramer noted last year that it was the largest period of retail failures in history because coronavirus lockouts and restrictions made a dent in the brick-and-mortar retail landscape.

As the US conducts its Covid-19 vaccination campaign and leads closer to a full economic reopening, the companies that have exceeded the damage may be able to benefit from another round of aid that includes a third spread of direct payments to most Americans. .

” The whole group did not get anxious a few weeks ago, and then Congress agreed to pump in $ 2 trillion [the economy] and now they’re looking at another leg higher, ‘Cramer said.

• Parent company of Versace, Jimmy Choo and Michael Kors
• The stock has risen 38.4% over the past three months, which is 7.65% higher than the S&P 500
• Chaikin Money Flow, some buying and selling pressure, is high
• Relative strength index, a momentum indicator, indicates that stock is in overbought territory

“Long thinks it’s the kind of stock being overbought, but instead of being afraid, he says it remains overbought,” Cramer said, “which means he sees it can revisit the old highs.”

• Parent of Coach, Kate Spade and Stuart Weitzman
• The stock has risen 51% over the past three months and is within the dollar of the 52-week high
• Moving Average Convergence Divergence (MACD), a Trend Momentum Indicator, recently made a bullish crossover
• Chaikin Cash Flow is Strong

‘When the stock fell back to its 50-day moving average in January, it was your chance [to buy it] “Long think Tapestry is a quiet leader with more room to run,” Cramer said. “He’s more clumsy about Tapestry than I am.”

• Parent of Louis Vuitton, Hennessy and Christian Dior
• The stock has risen by 8.25% over the past three months and is within reach of the recent high
• Traded sideways for months and created a winding spring situation that was prone to an upward trend
• MACD has made a bullish crossover, buying institutional investors

“Long bet the big boys are not done” to buy the shares, Cramer said.

• The share has risen by 45% over the past three months
• The simple 50-day moving average crossed the 200-day moving average in December, a strong signal
• The bullish crossover is known as a ‘golden cross’

“Lang points out that the MACD is currently flashing a buy signal, and it does not hurt that the last quarter was better than expected,” Cramer said. “Long bet it could make a run at its 2018 peak, about 50% from here.”